Starting in January of 2017 REALTORS® across the state began using
updated real estate forms provided by the Maine association of REALTORS®, MAR.
One of the most significant changes includes a change to the listing contract
that will now include information on company policy regarding the amount of
commission that a listing agent will be sharing with any other agent that
brings a buyer.
In a statement to
REALTORS® Linda Gifford, MAR legal counsel explains that listing agents have
always been required to disclose the amount of the commission that they are
charging home sellers that they are sharing with other agents that assist
buyers with purchasing a property. The forms have been revised to assist agents
with complying with our ethical obligation to share crucial information with
our clients. It is imperative that sellers know what portion of the commission
being charged to the seller will be shared with the buyer's agent as it will
likely have a significant impact on the selling process.
The confusion comes
from the way that the association chose to word the new provision of the
contract. Instead of simply stating a dollar amount or percentage of the
commission being charged to the seller that will be shared, the association
chose to allow listing agents to use a range. The form does not specify what
dollar amount or percentage within that range will be advertised or offered.
When discussing commission with a listing
agent there are some facts that a home seller should be aware of to facilitate
an intelligent and informed conversation.
1- In most cases a listing agent will
charge a seller a fixed price or a percentage of the selling price of a
property as a sales commission. This may be all or only part of the total
commission that a seller will pay.
2- Most listing agents are members of the
Multiple Listing Service (MLS). Unless they inform sellers in writing to the
contrary, they will advertise all property to other agents and syndicate the
listing to other websites within 5 days. They are required to advertise the
amount of the buyer agent's compensation in the MLS in the form of an absolute
dollar amount or as a percentage of the sale price. This compensation may not
be advertised as a range between 2 numbers.
Sellers don't really care about the range
of compensation that company policy allows a listing agent to offer a buyer's
agent. The care about the actual amount being offered. The new form is a step
in the right direction towards ensuring that sellers are informed. Unfortunately,
the wording is unnecessarily vague and fraught with the danger of creating
situations where the seller believes they are informed but are not. MAR should
revise this form to simply state the amount of the compensation that will be
offered to buyer's agents.
Brian Walker holds an Associate Broker’s
license in the State of Maine and practices real estate brokerage as a member
of Berkshire Hathaway HomeServices Northeast Real Estate. While he is a
licensed agent; he is not your agent. The information in this article dos not
constitute customer or client advice and does not create any type of
relationship. The opinions expressed are solely those of Brian Walker and are
not necessarily shared by any other affiliation.
